MANHATTAN (CN) - A Credit Suisse investment banker was sentenced to 10 years in prison for stealing inside information about nine pending mergers and acquisitions and making $7.8 million from inside trading, along with a friend he tipped off.
Hafiz Muhammed Zubair Naseem was convicted in February of 29 counts of insider trading. U.S. District Judge Robert Patterson sent Naseem straight to prison and ordered him to pay $7.5 million in restitution.
Naseem stole inside information on eight other acquisitions from J.P. Morgan Chase before he quit that company to work for Credit Suisse, prosecutors said. Naseem was not assigned to work on any of the deals, but searched the company's database to get information on them, evidence showed. He also "was observed rummaging through papers on the desks of several analysts when the analysts were not present," the U.S. Attorney's Office said.
He tipped off his cohort in Pakistan, and the two of them executed dozens of trades with the inside information, prosecutors said. An arrest warrant has been issued for the cohort, identified only as Rahim, 45.
In sentencing Naseem on Friday, Judge Patterson said that insider trading "is going on too much, so people must realize that if they do get caught, they will pay."
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